Zimbabwe reports positive transition to new currency


Zimbabwe Gold

from MARCUS MUSHONGA in Harare, Zimbabwe
Zimbabwe Bureau
HARARE, (CAJ News) – DESPITE some glitches, the Reserve Bank of Zimbabwe (RBZ) has hailed the transition from the domestic dollar (ZW$) to the new ZiG Currency by banking institutions and mobile money platforms as a success.

ZiG is an acronym for Zimbabwe Gold, which has been the Southern African country’s currency since Monday, following its launch last weekend.

The central bank reports that “over 90 percent” of banking institutions and mobile bank service providers have successfully configured their systems and processes from ZW$ to ZiG, with banking services now being accessible for the convenience of the transacting public.

“The Reserve Bank has, however, taken note of the concerns of the public emanating from the rejection of the ZW$ notes to be demonetised, which has resulted in the unavailability of ‘change’, thus forcing businesses, mainly commuter omnibuses to round-off prices to US$1,” John Mushayavanhu, RBZ governor, stated.

He said in that context, the apex bank would reiterate that the ZW$ notes currently in circulation were still valid and remain legal tender until April 30.

Business entities where the notes have been widely used, including commuter omnibuses, shops, fresh vegetable markets, and vendors, are advised to continue accepting payment in ZW$ notes until then.

RBZ is carrying out a nationwide educational and awareness campaign on the transition from the ZW$ to the use of the “gold-backed” ZiG.

Mushayavanhu, at the helm of RBZ since February, said this was in line with the bank’s financial inclusion strategy.

Pegged at US$1: ZiG13,56 at launch, the latter is Zimbabwe’s latest attempt to revive a local currency after its previously lucrative dollar suffered a demise in 2009 after hyperinflation.

– CAJ News

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